Crypto: “Binance had no intention of delegating 13 million UNI tokens”

On the decentralized exchange Uniswap, major crypto protocol decisions are made by the DAO. This grants users voting rights based on the number of tokens UNI they hold. Users can delegate their tokens to other entities, allowing them to vote on their behalf. But an operation to improve voting rights on Uniswap generates ambiguity

Context reminder

On October 18, Binance became the second most powerful voting member of the Decentralized Autonomous Organization (CAD) governing the centralized exchange (DEX) Uniswap. This, by now holding 5.9% of the voting rights on Uniswap, behind the venture capital firm Andreessen Horowitz. The latter controls 6.7% of the total voting rights. To achieve this result, Binance delegated 13.2 million tokens of UNI from its books of account. The amount of UNI delegated by Binance represents 1.3% of the total UNI supply.

Focus on the CAD concept

Binance should therefore weigh heavily in the governance votes related to the Uniswap crypto platform.

Doubts have emerged, Binance clarifies

Indeed, this enhanced presence of Binance in the DAO is not to the liking of the founder of Uniswap, Hayden Adams. He accuses the centralized exchange of having succeeded in obtaining such control by accumulating tokens UNITED. In other words, these tokens technically belong to Binance users, he explains. Also, the manager says suspect malicious intentions on the part of Binance.

In the face of criticism, Binance founder Changpeng Zhao rose to the niche to state that the exchange did not intentionally conduct the delegation operation of 13.2 million UNI. He added that the maneuver is above all not motivated by bad intentions.

“Binance did not intentionally delegate a large amount of UNI tokens. This is a quirk of the Uniswap system. UNI was transferred between Binance’s internal wallets, resulting in automatic delegation. It’s part of their protocol, and no, it wasn’t intentional on our part. Binance does not vote with user tokens »he explained.

Ultimately, this allayed fears that the exchange may have interfered in the governance process of decentralized exchange Uniswap.

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